(News Nation) – Auto insurance premiums have skyrocketed in recent years, and President Donald Trump’s tariffs could be even higher.
According to a new insurance analysis, all-coverage auto insurance costs could jump to an average of $2,472 per year by the end of 2025.
Even without tariffs, drivers can expect a 4% increase in the rates later in the year. Insurance comparison sites are predicted through their forecasts.
Some states, including Rhode Island, Michigan, Maine and Delaware, could see insurance costs rise by more than 12% by the end of the year.
The latest forecasts show a sharp shift from the first half of 2025. This even states that car insurance rates have stabilized nationwide and fell in 27 states.
Currently, tariffs on auto parts and inflation are threatening to derail positive trends.
“The US is increasing repair costs for insurance companies as it imposes several tariffs to increase the costs of auto parts,” the insurance said. “[Insurers] You can increase the premium to match this additional financial risk. ”
According to Insurify, if that happens, it will be another set-off for drivers whose annual insurance costs increased by more than 40% from June 2022 to June 2024.
Higher labor costs, more expensive parts, more technical vehicles and extreme weather are all driving the rise.
Data from the Insurance Information Institute (TRIPLE-I), an industry trade group, shows that the severity of automobile claims (average cost of claims) has been increasing in recent years. In 2023, the average automatic property damage claim was $6,551, an increase of about 40% from $4,689 in 2020. According to Triple I, collision claims increased with similar margins over that period.
Still, hiking auto insurance due to customs is not guaranteed. Regulators can push back the increase, and some insurers may already factor the fees into their fees.
Part of the uncertainty comes from the unpredictability of tariffs. Trump recently announced deals with Japan, South Korea and the European Union that will reduce car rates from 25% to 15%.
According to AAA’s latest 2024 survey, the total cost of owning and operating a new vehicle is currently $12,297 per year, or about $1,024 per month.
The most expensive states of car insurance in 2025
Insurify’s analysis found that inflation and insurance company losses could lead to an increase in average prices in all but four states by the end of 2025.
Maryland recently overtook New York as the most expensive state for auto insurance, with the average annual premium of $4,093 per year as of June, an increase of 20% from the summer of 2024, Insurify said.
New York ranks second, with an average annual cost of $3,724, followed by Delaware ($3,366) and Rhode Island ($3,331).
Known for the harmful storms, Florida is the most expensive state for auto insurance companies, but ranks ninth in the drivers with an average annual premium of $2,912 in June. This is down from the $3,250 peak in August 2024 for each data.
At the other end of the spectrum, New Hampshire has an average cheapest premium of $993 a year. Wyoming ($1,172), North Dakota ($1,237) and North Carolina ($1,250) were also one of the most affordable states.
The average cost of all coverage auto insurance in the US was $2,310 per year as of June.
According to Insurify, 10 states with the highest annual car insurance premiums as of June 2025
Maryland: $4,093 New York: $3,724 Delaware: $3,366 Rhode Island: $3,331 South Carolina: $3,202 Nevada: $3,159 Michigan: $3,131 Georgia: 3,025 Florida: $2,912 Colorado: $2,801
Washington, DC ranks second at $3,780, but was ruled out as it is not a state.
